SAMPAT KHIMRAJ JAIN,MUMBAI vs. JT. COMMISSIONER OF INCOME TAX RANGE 142 , MUMBAI
| आयकर अपीलीय अिधकरण ायपीठ, मुंबई |
IN THE INCOME TAX APPELLATE TRIBUNAL
“G” BENCH, MUMBAI
BEFORE SAKTIJIT DEY, HON’BLE VICE PRESIDENT
&
SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER
I.T.A. No. 5133/Mum/2024
Assessment Years: 2011-12
Sampat Khimraj Jain, Mumbai
Room No. 12, 2nd Floor
8/10, Tel Gally
Vithalwadi
Mumbai - 400002
[PAN: AABPJ2602C]
Vs
Jt. Commissioner of Income
Tax, Range - 14(2), Mumbai
अपीलाथ/ (Appellant)
यथ/ (Respondent)
Assessee by :
Shri Satyaprakash Singh, A/R
Revenue by :
Shri Bhangepatil Pushkaraj Ramesh, Sr. D/R
सुनवाई की तारीख/Date of Hearing : 21/01/2025
घोषणा की तारीख /Date of Pronouncement: 23/01/2025
आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order dated
27/09/2024 by NFAC, Delhi [hereinafter ‘the ld. CIT(A)’] pertaining to AY 2011-12. 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs.4,52,034/- on account of labor charges paid to:- i) M/s. Avani Jewellers
Rs.3,27,897/- ii) Shri Jayesh Jagga
Rs.1,84,347/- iii) Shri Rajesh M. Dhanak
Rs.92,069/-
Total
Rs.4,52,034/-
Representatives of both the sides were heard at length. Case records carefully perused and relevant documentary evidence duly considered in the light of Rule 18(6) of the ITAT Rules, 1963. I.T.A. No. 5133/Mum/2024
Briefly stated the facts of the case are that the assessee in engaged in manufacturing and trading of gold ornaments and gold bars. It electronically filed its return of income on 30/09/2011 declaring total income of Rs. 25,91,034/-. The return was selected for scrutiny assessment and accordingly statutory notices were issued an served upon the assessee. 5. During the course of scrutiny assessment proceedings, the AO issued notices u/s 133(6) of the Act to the following persons:-
The assessee was also required to produce the above parties for verification. On receiving no plausible reply, the AO made the addition of Rs.29,54,431/- debited under labour charges. The AO further made addition of Rs.35,73,170/- being difference in the sales figure shown in respect of M/s. Alukkas Gold Retail India (P) Ltd. and Rs.4,17,695/- being the difference in the labour charges received by the assessee and shown in the P&L account. 7. The assessee strongly agitated the matter before the ld. CIT(A) and furnished relevant documentary evidence. After considering the facts and the submissions and the evidence furnished by the assessee
I.T.A. No. 5133/Mum/2024
and also calling for the remand report from the AO, the ld. CIT(A) deleted Rs.11,28,125/- and further found that labour charges paid to the tune of Rs.8,38,486/- was also explained and deleted the same.
However, the ld. CIT(A) confirmed the addition of Rs.4,52,034/- being labour charges paid to three parties, namely, M/s. Avani Jewellers, shri
Jayesh Jagga and Shri Rajesh M. Dhanak.
8. We find that in the case of these three parties, the assessee has furnished ledger confirmations, ITR, Pan, Aadhar card, bank statements indicating payments made and labour charges vouchers. Merely because these parties did not respond to the notice u/s 133(6) of the Act, would not be the sole reason to make the impugned addition when there are documentary evidences mentioned hereinabove which go on to prove the identity and genuineness of the payments as all the payments were subject to TDS. Considering the evidences brought on record, we do not find any reason in making the impugned addition.
The AO is directed to delete the same.
9. In the result, appeal of the assessee is allowed.
Order pronounced in the Court on 23rd January, 2025 at Mumbai. (SAKTIJIT DEY)
(NARENDRA KUMAR BILLAIYA)
VICE-PRESIDENT
ACCOUNTANT MEMBER
Mumbai, Dated 23/01/2025
*SC SrPs
*SC SrPs
*SC SrPs
*SC SrPs
I.T.A. No. 5133/Mum/2024
आदेश की ितिलिप अेिषत /Copy of the Order forwarded to :
अपीलाथ / The Appellant 2. थ / The Respondent 3. संबंिधतआयकरआयु" / Concerned Pr. CIT 4. आयकरआयु" ) अपील ( / The CIT(A)- 5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file.
आदेशानुसार/ BY ORDER,